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  3. on january 1, 20x1, abc co. acquired 12,000 shares

On January 1, 20x1, ABC Co. acquired 12,000 shares of XYZ, Inc. at $3 per...

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Accounting

On January 1, 20x1, ABC Co. acquired 12,000 shares of XYZ, Inc. at $3 per share, the quoted price on this date. ABC Co. incurred $1,800 brokerage commission on the acquisition.

On December 31, 20xq, the quoted price per share is $5. If the shares are acquired on this date, the transaction cost is $0.75 per share.

On January 6, 20x2, all the shares were sold at $8 per share. The commission paid on the sale is $4, 800.

Requirements: See in the photo

image

P4,800. Requirements: The investment is classified as held for trading. Prepare the journal entries. ABC Co. does not use a fair value adjustment account. b. The investment is classified as held for trading. Prepare the journal entries. ABC Co. uses a fair value adjustment account. c The investment is classified as FVOCI (election). Prepare the journal entries. ABC Co. does not use a fair value adjustment account. 11 uring marketable equity securities

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